AUDUSD session lows deepened on Tuesday as the pair fell 1.05% to 0.6926 and tested a lower channel trendline. The move made AUDUSD the biggest mover against the U.S. dollar in the session. Moreover, the drop broke several key technical levels and turned the near-term bias toward sellers.
Earlier in the day, the pair tested the 61.8% retracement level at 0.7002. Sellers held that area, however, and kept pressure on the downside. The next move then pushed AUDUSD toward a swing zone between 0.6962 and 0.6978.
AUDUSD Session Lows Break Key Zone
That area had formed from several swing highs and lows since early April. The source also said the market retested it on June 11. However, buyers did not hold that support band, and the break opened the way for a faster decline.
After the pair touched an intraday low near 0.6942, it tried to recover. However, the rebound failed to retake 0.6962, which marked the lower edge of the broken swing area. As a result, sellers kept control and drove another move lower.
Channel Support Comes Into Focus
AUDUSD session lows then extended to 0.6926, where the pair tested lower channel trendline support. A clear break below that level would point to more downside momentum, according to the source. It also said little significant support sits below that area, which raises the risk of a deeper bearish move.
Meanwhile, U.S. stocks stayed under pressure. The NASDAQ fell 1.95%, while the S&P dropped 1.28%. That weakness, in turn, fed risk-off sentiment in currency pairs such as NZDUSD and AUDUSD.
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